It looks like the Internet segment has finally become important enough for DB Corp, the publishers of newspaper dailies Dainik Bhaskar, Divya Bhaskar, Saurashtra Samachar and Dainik Divya Marathi, to separate it out in its financials. The company has posted Internet revenues of Rs 2.57 crore for the quarter ending June 30, 2013 (Q1-FY14), up 17.4% from Rs 2.19 crore in the same quarter last year and up 29.8% from Rs 1.98 crore sequentially.
The loss before tax for the Internet segment was at Rs 3.21 crore, a significant 49.3% increase from Rs 2.15 crore loss in the same quarter last year but a 5% improvement from Rs 3.38 crore loss in the previous quarter.
DB Corp currently operates group portals like dainikbhaskar.com, divyabhaskar.com, dailybhaskar.com, divyamarathi.com and mobile properties like 54567 which allows users to send messages consisting of images, audio, text and video. The company claims that its group portals generated a cumulative 339 million total pageviews, of which Dainik Bhaskar apparently accounted for 217 million pageviews and Divya Bhaskar apparently accounted for 103 million pageviews.
Demerger of Internet Business: Earlier this month, DB Corp had proposed the demerger of its integrated Internet and Mobile Interactive services business from its digital arm I Media Corp Ltd (IMCL) to the holding company DB Corp with effect from April 1, 2013. The company had informed that it had started the process of obtaining all the approvals and the demerger was expected to be completed in 2013-2014.
Prior to this, DB Corp also sold its entire 51% stake in Divya Prabhat Publications Pvt. Ltd, which published an afternoon newspaper called Divya Prabhat Kiran in Indore.
Need To Know
– DB Corp has a combined average daily readership of 19.8 million in the country. Dainink Bhaskar claims to be largest read newspaper of urban India and claims to have leadership position in Madhya Pradesh, Chhattisgarh, Chandigarh, Punjab, Haryana (CPH), urban Rajasthan and urban Gujarat. The company currently publishes 8 newspapers, 65 newspaper editions and 199 sub-editions in four languages (Hindi, Gujarati, Marathi and English) across 13 states in India.
– Total revenues up 19% year-on-year (YoY) to Rs 453.9 crore from Rs 381.5 crore in Q1-FY13.
– Profit After Tax (PAT) increased 74% YoY to Rs 76.1 crore from Rs 43.7 crore in Q1-FY13.
– EBITDA: 65% increase YoY to Rs 137.4 crore from Rs 8.31 crore in Q1-FY13.
– Advertising revenues up 21% YoY to Rs 344.7 crore from Rs 286.2 crore in Q1-FY13.
– Print Advertising revenue: 21% increase to Rs 325.3 crore from Rs 270.1 crore in Q1-FY13.
– Print Circulation revenue: 17% increase to Rs 76.7 crore from Rs 65.6 crore in Q1-FY13.
– Radio Business: Ad revenues increased 22% to Rs 17.3 crore from Rs 14.1 crore in Q1-FY13. PAT increased to Rs 2.4 crore and EBITDA increased to Rs 5.1 crore.
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